Sean Mulryan / Ballymore Group: According to NAMA Wine Lake, one of NAMA’s top 10 borrowers Sean Mulryan and his Ballymore Group are expected to imminently refinance performing loans with a par value of c. €2.4bn. Management accounts for NAMA for Q2 2016 showed that the state agency’s remaining par value loans of c. €35.9bn were valued at c. €5.1bn (c. 14c in the Euro). If the loans in the Mulryan and Ballymore connection about to be refinanced were valued at par, NAMA’s remaining par value loans of c. €33.5bn would be valued at c. €2.7bn (c. 8c in the Euro). Nama Wine Lake, 27th November
Navan Shopping Centre: Davidson Kempner has acquired a majority stake in Navan Town Centre for c. €62m. According to the joint selling agents Cushman & Wakefield and Savills, the shopping centre should generate a net yield of c. 7.31%. They have purchased a 66% interest in the centre from property developers Duignan & McCarthy (who have managed the operation of the centre for the past number of years), with the balance of shares continuing to be held by Irish Life. The centre was built in 1980, and following a number of extensions, currently has a combined retail area of 250,000 sq. ft. The purchased shareholding generates an operating income of c. €4.7m p.a., including c. €1.2m from two multi-storey carparks and c. €478k from a fully owned unit occupied by Marks and Spencer. Major tenants of other units owned jointly with Irish Life include New Look, Heatons and Boots. The Irish Times, 23rd November
Fairgreen Shopping Centre: Oaktree has purchased Fairgreen Shopping Centre in Mullingar, Co. Westmeath for in excess of €12m. Joint agents Cushman & Wakefield and Savills expect the shopping centre to produce a return of c. 8.13% based on net operating income. The centre was built in 2005, has a floor area of 105,000 sq. ft. and includes eight large retail units. The net rent from the shopping centre is c. €920k p.a. and the tenants include New Look (paying a rent of €230k), TK Maxx (which pays a revenue-based rent) and Dorothy Perkins (paying €180k). The Irish Times, 23rd November
Eden Restaurant: Eden restaurant on 7 South William Street in Dublin city centre has been sold by CBRE to a private investor for c. €2m. The two story, 100-seat restaurant extends to 2,982 sq. ft. and is rented by Jay Bourke on a 20 year lease (running from 2012) at a rent of c. €120k p.a. The Irish Times, 23rd November
One George’s Dock: Swedish property adviser Catella has paid over €40m to acquire the JP Morgan HQ in Dublin’s IFSC. JLL originally quoted €36.5m for One George’s Dock, which also attracted interest from several big names including State Street and Hibernia REIT. The five-storey over-basement office block extends to 44,476 sq. ft. and includes 46 basement car parking spaces. It is let to JP Morgan under a 25-year FRI lease from December 1996, with just over five years remaining and upwards only rent reviews. The current rental income is c. €1.8m p.a., which represents 80.44% of the full rental value. This figure will revert to 100% rental value upon expiry of the current lease in 2021. The Irish Times, 23rd November
Molesworth Street Offices: Savills is quoting rents of €60 – €65 psf for high-spec office space at 40 Molesworth Street in Dublin 2. The building, which previously contained offices of the European Union, was purchased by IPUT in 2013, and the company is spending c. €9m to refurbish the property. The redeveloped offices should be ready for occupation by June 2017, and are being offered either as a single let or on a floor by floor basis, with sizes ranging from 3,000 sq. ft. to 30,000 sq. ft. The redeveloped building will include 17 car spaces and an area for bicycle storage. The Irish Times, 23rd November
Microsoft Offices: Riverdeep founder Barry O’Callaghan is paying in excess of €20m for a c. 87,000 sq. ft. office block in Leopardstown, south Dublin, which he intends to redevelop into the first international school in Ireland. The building is currently occupied by Microsoft, and Mr O’Callaghan is applying for permission to convert the offices to educational use when Microsoft vacate the property next year. The new school will teach the widely recognised International Baccalaureate as an alternative to the Leaving Certificate. Mr O’Callaghan is currently in talks with an academic partner in relation to the project, which has gained added impetus following the result of the Brexit referendum. The Sunday Times, 27th November
Sandwith Street Upper: Rails Investment Limited has applied to Dublin City Council for permission to demolish a former post office on Sandwith Street Upper in Dublin city centre and replace it with a new 115,000 sq. ft., four to seven-storey over-basement office building. Nama Wine Lake, 27th November
Enterprise House, Blackrock: Friends First has received planning permission from Dún Laoghaire-Rathdown Council for the c. €11.5m redevelopment of Enterprise House in Blackrock, south Dublin. The project will involve the construction of over 86,000 sq. ft. of office space in a new five-storey building. Sunday Business Post, 27th November
2016 Transaction Activity: A new report by Cushman & Wakefield estimates that c. €143m worth of hotels were sold in Q3 2016, bringing the YTD sales proceeds to c. €283m, spread across 36 transactions. The most substantial deal in Q3 2016 (and 2016 YTD) was the sale of the Gresham to Riu Hotels for c. €92m, which was the biggest hotel deal since the sale of the Shelbourne in 2014. The Irish Times, 28th November
LeBruin acted as an advisor to Precinct Investments on the sale of the Gresham Hotel
Enniskerry Hotel: Johnny Ronan has applied to Wicklow County Council for permission to build a 141-bedroom hotel in Enniskerry, Co. Wicklow on the grounds of St Valery’s house, a protected building which dates to about 1810. The new four-storey over-basement hotel will extend to 161,458 sq. ft. and will contain a restaurant, bar and meeting rooms along with 160 car parking spaces. The Sunday Times, 27th November
Dublin Room Rates: The chief executive of Dalata, Pat McCann has stated that he believes Dublin hotel room rates are too low when compared internationally. In comparison with c. 20 European cities, Mr McCann notes that Dublin is 11th in room rates but 1st for occupancy. Mr McCann believes that low room rates are having a detrimental effect on the supply of new hotel rooms in Dublin. The Irish Independent, 27th November
Centerbridge Partners: Centerbridge Partners, a New York private equity firm, has appointed Eastdil Secured to manage the sale of its interests in new housing developments in Hollywoodrath in Hollystown, Scholarstown Wood in Rathfarnham and an undeveloped site in Station Manor in Portmarnock. Centerbridge set up a JV in 2013 with Dublin-based Avestus Capital and property developers Regency to manage the development of the three sites. The first two phases of Hollywoodrath, launched earlier this year, have sold out (with prices from €300k – €360k for three and four bedroom homes) and the €14m site has planning permission for 450 homes. The Scholarstown site, which was acquired for c. €37m, has planning permission for 314 high end homes. The Irish Times, 23rd November
Central Bank Mortgage Rules: The Central Bank has eased the mortgage rules which apply to first time buyers, meaning that they will only require a 10% deposit regardless of the value of the property they are purchasing. This compares with the current rules, whereby a deposit of 10% is required for loans up to €220k, but 20% is required for the balance of any loans above this amount. The rules for non-first time buyers remain unchanged, therefore the maximum allowable loan-to-value for these borrowers remains at 80%. There have been no changes to other elements of the rules, such as the current 3.5 times ceiling on the loan-to-income ratio, requirements for buy-to-let borrowers, and the exemptions for negative equity borrowers. As part of the revised rules, 5% of the value of new mortgages to first time buyers will be allowed above the 90% LTV limit, while 20% of the value of new mortgages to second and subsequent buyers for primary residences will be permitted above the 80% LTV limit. The Central Bank had previously allowed for a flat exception rate of 15% across all categories. The Irish Times, 23rd November
Glasnevin site: Lisney is guiding over €15m for a five-acre site on Botanic Road in Glasnevin, Dublin 9 which contains planning permission for 119 homes. An Bord Pleanála has granted planning permission for 43 houses (mix of three-, four- and five-beds), 76 apartments (17 one-beds, 42 two-beds and 17 three-beds) a semi-basement carpark, surface parking, a café and a childcare facility. According to Lisney, new planning regulations at Dublin City Council mean the site has potential to include a further 19 homes. The Irish Times, 23rd November
Clontarf Site: CBRE is quoting a guide price of €3.8m for a residential development site in Clontarf in Dublin. Based on two feasibility studies by Ryan & Lamb Architects, the 1.4 acre site has potential to accommodate either a low-density scheme containing 16 townhouses, or a higher density scheme of 62 apartments. The site has 60 metres of frontage onto Mount Prospect Avenue. The Irish Times, 23rd November
Galway Site: Cushman & Wakefield has called for final bids by December 14th for the Galway Irish Crystal redevelopment site (and existing buildings) located on the Old Dublin Road in Galway, which is guiding €2.25m. The 4.6-acre site is zoned for residential use and previously had planning for 178 apartments before the economic downturn. Although this zoning is in place, it is believed the new owners may decide to retain or enlarge the existing commercial buildings on the site, which are rented by Galway Irish Crystal for c. €200k p.a. An additional €10.5k of rent p.a. is generated by a telecommunications mast. The Irish Times, 23rd November
Carrigaline Development: Astra Construction Services Ltd has received planning permission for a c. €38m housing and commercial development in Carrigaline, Co. Cork. Work on the site, which has permission for 297 units, is due to commence in 2017. Sunday Business Post, 28th November
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CBRE Retail Report: The latest CBRE report on the retail market indicates that the economic recovery has begun to spread beyond Dublin and its immediate commuter counties. In Cork, the high street vacancy rate has decreased from c. 19.5% in Q1 2015 to c. 8.1% in Q3 2016. The worst vacancy rate is in Athlone, Co. Westmeath, however even here the vacancy rate has fallen from c. 21.6% in 2014 to c. 14.9% in Q3 2016. Counties such as Limerick, Sligo and Waterford have also seen contraction in their vacancy rates. With regards to Dublin, the report states that the capital has a high street vacancy rate of c. 2.58%. This includes units that are reserved or close to fit-out, meaning that all streets are actually close to or at full occupancy. The report also notes however that while retail sales increased by c. 3.4% in the first 9 months of 2017, consumer sentiment dipped to a 22-month low in October as events such as Brexit began to impact the public’s view on the economic landscape. The Irish Independent, 17th November
Setanta Centre: The Irish Times reports that Larry Goodman has withdrawn the Setanta Centre from the market after negotiations to sell the Dublin city centre property fell through. Goodman had reportedly been in discussions to sell the 41-year-old office and retail complex to an overseas bidder for €110m-plus, however it is believed that the overseas bidder could not close the transaction. With the property now understood to be off the market, Goodman may look to redevelop it himself. The Irish Times, 21st November
Irish Nationwide HQ: Hines has paid c. €37m to acquire the former HQ of Irish Nationwide Building Society on Dublin’s Grand Canal from London & Regional Properties (L&R). The sale price is c. €22m above the €15m paid by L&R to acquire the property in late 2013. Before agreeing to sell the property to Hines, L&R had been in discussions with Dublin City Council about seeking planning permission for a second office block of c. 35,000 sq. ft. and 38 apartments. The site extends to c. 1.7-acres. The Irish Times, 16th November
86 – 88 Lower Leeson St: Browne Corrigan Chartered Surveyors is guiding a rent of €55 per sq. ft. for mock Georgian offices currently under renovation at 86 – 88 Lower Leeson Street in Dublin 2. The building is the former HQ of the property fund IPUT and was most recently purchased by the Eric Kinsella, the founder of Espirit Investments Ltd, for c. €11m in 2015. The letting agent has advised that the first floor has recently been let, so it is likely that the remaining space will be let on a floor-by-floor basis. The extended building will have 20,150 sq. ft. of space, with floor plates ranging from 3,090 – 4,327 sq. ft. and is being fitted out to very high specifications. Car spaces are also available to rent at €3,500 per space. The Irish Times, 16th November
Three Park Place: Joint Agents Knight Frank and BNP Paribas Real Estate are quoting rents of €65 psf for Three Park Place, a new office block being developed by the Clancourt Group on Dublin’s Upper Hatch Street. The seven-storey, 135,000 sq. ft. property is expected to be completed by Q3 2017 and will be located alongside One and Two Park Place, previous developments completed by the group. The block will also facilitate 34 car spaces and 142 bicycle spaces. The Irish Times, 16th November
Irish Life Development: Irish Life has applied for planning permission to demolish the former Bord Failte HQ in Dublin and replace it with a six-storey office block. The 1960s building, which is located at the junction of Baggot Street Lower and Wilton Terrace, has been vacant for almost a decade. Irish Life built the original property and then purchased the leasehold interest in 2015. Now the group wants to replace the existing 24,757 sq. ft. building with a 75,347 sq. ft. block. The company is now owned by Great-West Lifeco. The Irish Development, 20th November
1GQ: A large waterfront building on George’s Quay in Dublin 2 is likely to be of interest to financial institutions considering relocating to Dublin following the recent Brexit vote. The newly renamed 1GQ, which was previously Ulster Bank’s Dublin HQ, enjoys a prime location at the gateway to Dublin’s south docks. The existing building will be stripped out and modernised, while a five storey extension to the front of the property will increase the floor area from 110,000 sq. ft. to over 130,000 sq. ft. The refurbished building will obtain a BER rating of A3 and an international LEED platinum rating, and will include 100 parking spaces, secure bicycle parking and 14 showers. The building will be one of the only office buildings available for fit out in Q2 2017 and agents JLL will offer it for letting to a single tenant at €55 per sq. ft. The Irish Times, 16th November
Cork Development: The Cork-based developer JCD has been refused planning permission for over 200 apartments in City Gate Plaza in Mahon, Cork. JCD had been proposing to develop the apartments alongside a substantial office development which they already have planning permission for. Despite the setback, the developer has re-affirmed their intention to proceed with the office development, which should create over 200 construction jobs. There are over 3,000 employees in City Gate. The Evening Echo, 16th November
Lynam’s Hotel: A private investor has paid nearly €6m for Lynam’s Hotel on Dublin’s O’Connell Street, which had been on the market through CBRE Hotels for €4m. The 13,800 sq. ft., 42-bedroom hotel, which is located beside the Spire and the GPO, is not trading at present. Given the property’s prime location, the new owner should benefit from the significant footfall from O’Connell Street. A former bank, the property was redeveloped into a hotel in 2001 and includes a self-contained café / restaurant facility. The hotel was put into receivership by NAMA in 2015, and has recently been used by Dublin City Council to provide emergency accommodation. The Irish Independent, 17th November
Bow Lane Hotel: The British hotel and serviced apartment group Marlin has been granted planning permission by Dublin City Council for a new 300-bed hotel close to St. Stephen’s Green in Dublin 2. The €60m hotel is to be located on Bow Lane East, will be up to seven storeys in height and should take c. 30 months to develop. The Sunday Times, 20th November
Blackpitts Hotel: The Sunday Times reports that Denis O’Brien has agreed to a deal which will see Starwood Aloft operate his 202-bedroom hotel which is under construction in Blackpitts, Dublin 8. The hotel, which is being constructed by BAM, should be ready in 2018. The Aloft brand opened its 100th hotel last year and has hotels in London and Liverpool. The Sunday Times, 20th November
Montrose Student Residence: The Irish Times reports that Hines has been chosen as the preferred bidder for Ziggurat’s Montrose Student Residence on Stillorgan Road in Dublin 4. Hines is understood to have bid close to the €41.5m asking price for the property. Ziggurat purchased the former three-star hotel in 2012 and then redeveloped it so that it now has 205 student bedrooms over five floors and 8,363 sq. ft. of ground floor commercial space. The rent roll of the newly completed development is expected to rise to c. €2.91m p.a. The Irish Times, 16th November
Priory Hall: Dublin City Council has sold the first 43 apartments offered for sale in the revamped Priory Hall complex near Donaghmede, North Dublin. The apartments sold within days of going on the market. The apartments achieved over €7m for the council, which has spent over €27m on the complex since it was evacuated under the orders of the High Court in 2011. Work began two years ago on the redevelopment of the derelict 187 apartment complex (which has been renamed ‘New Priory’), and has now been completed on 60 apartments. Prices for the redeveloped apartments started at €145k for a one-bed and €165k – €178k for a two bed apartment. Of the 60 redeveloped apartments, 43 have been sold, nine have been retained for social housing and eight have been returned to previous buy-to-let owners. The Irish Times, 17th November
Student Accommodation Development: An Bord Pleanála has granted planning permission for a student accommodation scheme in Dublin city centre, following an application by Kesteven, which is owned by former Ulster Bank CFO Charles McManus. The seven-storey development, which will be located on Stephen Street Upper, will provide 284 student accommodation units and will also include retail space. The project will involve the demolition of properties on Aungier Street and Stephen Street Upper. The Irish Independent, 22nd November
Mortgage Lending Rules: The Central Bank Commission is due to review its mortgage lending rules this week, with any changes announced soon after. The commission will be asked to consider proposals to increase lending, especially to first time buyers. Two areas which banking sources believe the commission will look at are (i) the portion of a bank’s loan book which can have loan-to-value (LTV) breaches and (ii) the €220k threshold for the 10% deposit. Currently, a bank may only provide LTV breaches for up to 15% of their loan book, however this may be increased to 20%. The commission may also increase the threshold whereby borrowers only require a 10% deposit, up from the current level of €220k. The Irish Times, 19th November
Kilcarbery Business Park: A large distribution centre in Kilcarbery Business Park, Dublin 22, has gone on sale with a guide price in excess of €15m. The premises was built in 2000 and has since been occupied by Britvic, who purchased the property in 2013 for c. €14m. Britvic has now decided to sell the facility after outsourcing its distribution business. The property extends to 211,130 sq. ft., includes a three-storey block of offices and is situated on a site of 9.83-acres. Kilcarbery is a highly regarded business park and adjoins both the IDA’s Grange Castle Business and Technology Park and also Profile Park. The Irish Times, 16th November
Furry Park: William Harvey & Co. is seeking rents of €510k p.a. (€7.79 psf) for a 65,445 sq. ft. industrial unit near Dublin Airport which will be available to rent from January 2017. Unit K Furry Park is just a two-minute drive from Dublin Airport and includes 11,011 sq. ft. of office space, which is located to the front of the building. The property is situated on a 3.06-acre site. The Irish Independent, 17th November
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RETAIL
Skerries Point Shopping Centre: Offers of €3m are being sought by Savills for Skerries Point Shopping Centre in north Dublin. The centre extends to 68,682 sq. ft. and has parking at basement level for 200 cars. The current rental income of the centre is c. €335k p.a. and the current tenants include EUROSPAR, Boylesports and Well Fit Health and Fitness. The weighted average unexpired lease term is c. 6.5 years. Almost 60% of the floor space in the centre is currently vacant, offering the buyer the opportunity to increase the rent roll significantly. In addition, a new housing development adjacent to the centre is due to be developed in 2017 and will include 100 homes. The Irish Times, 9th November
Drury Street: A former wholesale fashion outlet at 46 Drury Street in Dublin 2 has been put on the market for €2.5m through estate agent Eoin Conway. The three story red-brick building is likely to be of interest to both property investors and restaurateurs. The building has been owned for the past 17 years by a family in the fashion business, who acquired the building for c. €1.143m. The Irish Times, 9th November
Castle Market: Two interconnecting restaurant properties on Castle Market in Dublin city centre have been sold for more than €2m to an unidentified purchaser. Numbers 4 and 5 Castle Market had been guiding €1.75m, however strong competition amongst bidders meant that the property eventually sold for well above the guide price. The current tenant Jo’Burger pays rent of c. €120k p.a., offering the new owner a net yield of c. 5.97%. Jo’Burger occupy the three-storey, 2,000 sq. ft. properties under a 20-year lease. The Irish Times, 9th November
Dublin Office Developments: According to a new report by Savills Ireland, 136 office buildings with a combined floor area in excess of 12m sq. ft. are being planned for Dublin over the next five years. If completed, the new buildings will have capacity to accommodate more than 100,000 workers. Savills acknowledge that not all buildings being planned will come to fruition, however it states that if 50% of the planned projects are delivered, there would be sufficient capacity to cope with the potential demand from UK companies seeking to relocate operations as a result of Brexit. The report notes that 39 new developments are currently under construction, 13 of which have pre-commitments from tenants to take space. A further 62 developments have planning permission but work has yet to commence, while the remaining 35 are in the planning stages. The Irish Independent, 10th November
Hibernia REIT: Last week Hibernia REIT published its half-yearly results for September 2016. Most notably the value of its portfolio, which consists primarily of central Dublin office space, has risen above €1bn for the first time. The group also recorded a pre-tax profit of c. €32.4m for the period, although this was well below the c. €73.7m profit recorded for the same period in 2015. Hibernia had debt outstanding of c. €110.5m at the end of December, representing a loan-to-value of c. 10.7%. According to the chief executive Kevin Nowlan, the company still has c. €300m available to fund future acquisitions. The Irish Times, 10th November
Pottery Business Centre: Pottery Business Centre in Dún Laoghaire , south Dublin has been brought to market through agent CBRE, who is guiding €2m for the property. The four-storey, 45,576 sq. ft. office complex is split between 19 fitted office suites (20,980 sq. ft.) and unfitted office space (24,596 sq. ft.). The complex also includes 100 car spaces. Only three of the suites are let at present, generating rental income of c. €56k p.a. The Irish Times, 9th November
Dublin Development: Chesway Ltd, which is linked to hotelier Frankie Whelan, has sought planning permission from Dublin City Council for a 40-bedroom hotel at 22 Harcourt Terrace. The property is a former nursing home located at the junction of Adelaide Road and Harcourt Terrace. Mr Whelan advised the Irish Times that he intends to market the property as a premium four-star hotel, targeting corporate clients midweek and the leisure market at the weekend. The proposed development involves a single-storey extension to the front and side of the property, an extension on the first floor and internal modifications. Chesway purchased the property for c. €4.6m. The Irish Times, 14th November
Camden Complex: Joint agents CBRE and Morrissey’s are inviting offers of over €8m for the Camden Deluxe Hotel and Entertainment Complex on Lower Camden Street in Dublin. The 42,000 sq. ft. hospitality complex contains a variety of attractions including a 35-bedroom hotel, Planet Murphy’s bar and snooker hall and the Palace nightclub. The property occupies a site of 0.42 acres in a conservation area, and is zoned Z4 under Dublin City Council’s Development plan “to improve mixed service facilities”. The Irish Times, 9th November
Cork Hotel: Carra Shore Ltd is proposing to develop a new 146-bedroom hotel on South Terrace in Cork city centre. If planning permission is granted by Cork City Council, the hotel would be spread across three Georgian houses at 31, 32 and 33 South Terrace. Carra Shore Ltd is affiliated with the Seraphine Hotel Group, the London-based hotel operator. The Evening Echo, 14th November
Roslyn Park: The Department of Education (DoE) has completed the purchase of the Rehab Group’s Roslyn Park complex in Sandymount, Dublin 4. The DoE is believed to have paid over €20m for the complex, more than €8m above the guide price. Roslyn Park extends to 5.16 acres and the main property on the site is a period house which was designed in 1790. The DoE is expected to place two schools on the property, subject to planning permission. It is reported that Shellybanks Educate Together primary school will seek to move to Roslyn Park as one of the schools. The Irish Times, 9th November
Mortgage Interest Rates: New figures from the Central Bank show that the weighted average interest rate on new mortgage agreements was c. 3.43% in September 2016, representing a decrease of 24 bps YoY. This rate is still substantially above the Euro Area rate, which was c. 1.78%. The weighted average interest rate on new variable rate mortgage agreements was c. 3.41%. Variable rate mortgages account for just under two-thirds of all new mortgage agreements. Central Bank of Ireland, Retail Interest Rates – September 2016
Daft Q3 2016 Rent Report: The Q3 2016 report on the Irish rental market by Daft.ie shows that on a national basis, annual rental inflation is now c. 11.7%, the highest reading recorded since Daft.ie began compiling data in 2002. National rents rose by c. 3.9% in Q3 2016, with rents in Dublin rising by a similar percentage. The number of properties available to rent also continues to fall, with less than 3,700 homes available to rent on October 1st 2016. This represents a decrease of c. 12% when compared to the same date in 2015. The Daft.ie Rental Report, Q3 2016
Build-To-Rent Sector: According to market sources, pension funds such as AIG, Allianz and at least three German funds are seeking to invest over €2bn in build-to-rent developments in Dublin. It is expected that these funds will be interested in funding the development of c. 1,500 apartments in Cherrywood, south Dublin. The Sunday Times, 13th November
Neville Group: The Neville Group will commence building c. 500 homes in Cherrywood, south Dublin, in 2017. The group has capacity to build c. 3,000 homes in Cherrywood, where it is in a JV with Hines, who owns the development land. The group has also spent c. €10m on hotels in recent years and will look to add more hotels to their portfolio, should suitable investments arise. The Sunday Business Post, 13th November
Celbridge Site: REA Coonan is guiding €2.7m for a four-acre site on Ardclough Road in Celbridge, Co Kildare. The site is zoned for “new residential” and can either be purchased in one lot or alternatively at €675k per acre. The Irish Times, 9th November
Ballymount Industrial Estate: An unnamed investor has paid c. €6.75m (c. €500k over guide) for two industrial units on a 3.4-acre site on the Lower Ballymount Road in Dublin. The first unit is let to Smurfit Paper Snacks Ltd, however the lease is guaranteed by Smurfit Packaging Corporation Ltd. Smurfit occupy the 59,500 sq. ft. unit under a 25-year lease from August 2005. Smurfit is paying a rent of c. €619k p.a. The second unit on the site extends to 27,000 sq. ft. While this unit is currently vacant, it should achieve rental income of c. €94.5k p.a. The units were developed in the 1970’s. The Irish Times, 9th November
Dún Laoghaire Ferry Terminal: Lisney is seeking rents of €10 psf for a disused ferry terminal in Dún Laoghaire, south Dublin. The terminal extends to 75,000 sq. ft. and includes 4,951 sq. ft. of offices and a first floor restaurant. The ferry terminal was built to facilitate Stena Line’s HSS service to Holyhead, which ran from 1995 to 2015. The decision to lease the terminal follows the recent granting of planning permission by An Bord Pleanála for a c. €18m cruise ship berth in Dún Laoghaire Harbour. The Irish Times, 9th November
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Project Tolka: NAMA officially launched the sale of Project Tolka last Friday. However the c. €1.5bn par value loan portfolio does not include Carton House, the hotel and golf resort. The Sunday Business Post reports that while NAMA still intends on selling the asset, they first need to agree outstanding issues with the Mallaghan family. The Sunday Business Post, 6th November
Madrid Portfolio: The Madrid Portfolio, which was previously owned by Bernard McNamara, has been split between Friends First and the Doyle Family. Friends First has purchased nine retail and office properties in Dublin city centre, with the assets located on South William Street, Chatham Row, Coppinger Row and Clarendon Street. Friends First is projecting a return of 4.5% on their investment. The assets purchased by the Doyle family include 6 – 7 Balfe Street, 8 – 9 Balfe Street and 1 Westbury Mall. The Doyle family also own the nearby Westbury hotel and there is potential for them to add 50 bedrooms to their hotel should they decide to redevelop their newly acquired assets. The Irish Times, 2nd November
Crampton Buildings: A well-known retail block in Dublin’s Temple Bar area is due to be offered for sale in early 2017. Ardstone Capital, which bought the portfolio for c. €8.26m in 2014, has not yet set an asking price, but selling agents Bannon is expected to seek a minimum of €13m. The portfolio comprises c. 17,000 sq. ft. of retail space spread across 12 buildings which run along three sides of Crampton Buildings. Some of these buildings are currently being upgraded and amalgamated to boost rental income. The current rental income of c. €583k is expected to rise to c. €700k by the time of sale, offering the purchaser a return of c. 5%. Two of the largest contributors to the current rental income are Elephant & Castle and Gallagher’s Boxty House, who pay annual rents of €160k and €120k. Ardstone is believed to be seeking to reduce its exposure to Irish commercial property assets, instead turning its attention to the new homes sector. The Irish Times, 2nd November
Sandyford Retail: BNP Paribas Real Estate is inviting offers of €2.75m for a retail investment in Sandyford, Co. Dublin. The 3,895 sq. ft. building is let under separate tenancies to Londis, a Café to Go coffee shop and a Bank of Ireland ATM. The current rental income of c. €140k p.a. (of which c. €123k is from Londis) is due to rise to c. €193k p.a. in January 2017. The property is part of the Atrium office development where Microsoft is the largest tenant. The UK developer U+I own the Avid Technologies property which is directly across from the retail investment, and has recently secured planning permission to demolish the building and replace it with 147 apartments, a crèche, café and gym in a new five to eight storey block. The Irish Times, 2nd November
Ulysses / Millennium Park Portfolio: Tetrarch Capital and their joint venture partner Pimco have agreed the sale of the Ulysses and Millennium Park office portfolio to the ESB pension scheme for an undisclosed amount, believed to be in excess of €140m. The portfolio consists of six office properties in Dublin 1 (c. 347,000 sq. ft.) and a further six offices in Millennium Park, Naas, Co. Kildare (c. 142,000 sq. ft.). The annual rental income of the portfolio is understood to be c. €10m. Approximately 56% of the portfolio is let to Government covenants, while the portfolio also includes Bulgari, Kerry Group and Version 1. The transaction will require approval from the Competition and Consumer Protection Commission and is expected to be completed before Christmas. The Irish Times, 4th November
Cumberland House: Planning permission has been granted for a c. €9.3m office development on Fenian Street in Dublin 2. The Hibernia REIT development covers phase two of the overall development of Cumberland House. The first phase saw the recent refurbishment of the property to accommodate Twitter’s new headquarters. This new phase will allow for the construction of nearly 75,000 sq. ft. of office space over six floors. The Sunday Business Post, 6th November
Central Bank HQ: The Central Bank has confirmed that Hines has been chosen as the preferred bidder for its HQ and two adjoining buildings on Dame Street in Dublin. The bank did not confirm the purchase price, however it is believed to have been close to, but below, the €65m guide price. The properties were highly sought after, with Hines being chosen as the preferred bidder ahead of five other bidders.
While Hines has not commented on their plans for the properties, one of the most likely plans is that the former HQ is given a substantial refurbishment to convert the property into high-grade office space. The potential cost of this refurbishment is c. €10m. The Irish Times, 2nd November
North Wall Quay: Paddy McKillen Jr has submitted scaled down plans for a hotel in Dublin’s docklands after a previous proposal for a 93-bedroom hotel was rejected by Dublin City Council. The previous proposal was rejected after the council ruled that the proposed hotel would “adversely impact on the structure and integrity” of 82 North Wall Quay, a former warehouse which is a protected structure. The original plans involved adding an additional five stories to the property, but this has now been scaled back to an additional two floors, meaning the revised hotel will contain 58 bedrooms. The site is located beside the €700m Dublin Landings scheme of offices and apartments, and the new Central Bank headquarters. The Sunday Times, 6th November
Smithfield Lofts: Hooke & McDonald is guiding €9.5m for 44 apartments (16 one-beds and 28 two-beds) and six two-bed townhouses from the Smithfield Lofts development in Smithfield, Dublin 7. The guide price equates to c. €180k per apartment and c. €250k per townhouse. The sale includes 33 basement level parking spaces, but does not cover the entire 63 unit development, which also contains ground floor commercial accommodation. All of the units are occupied at present, with the exception of one unit which is being retained to facilitate viewings. The current rental income of c. €619k p.a. offers a gross yield of c. 9.35%. The Irish Times, 2nd November
House building: The latest data from Construction Information Services (CIS) shows that c. 11,550 housing units are currently being constructed in Ireland, with a further 12,338 having received planning permission in the first nine months of 2016. This is a significant increase on last year, but is still significantly below the forecast demand for 25,000 units per year. According to CIS, c. 9,000 properties went on site in the first nine months of 2016 as part of multi-unit developments, representing a c. 25% increase on the same period in 2015. Of these units, c. 4,700 units were located in Dublin, with a further c. 1,400 in Munster. Approximately 2,550 one off houses have been started since January. The Irish Times, 4th November
Navan Site: CBRE is guiding €5.95m for a 51-acre site on the outskirts of Navan, Co. Meath. The site, which is zoned for high-density residential development, is being sold by a receiver, Tom O’Brien of Mazars. The site was designated as the Clonmagadden Valley Strategic Development Zone before the economic downturn, which allows for the development of up to 1,400 residential units once a town centre is in place. However, Robert Colleran of CBRE believes that it may now be possible to amend the planning conditions for the site, to allow for a low-density residential scheme. The Irish Times, 2nd November
Sandyford House: CBRE has been instructed to call for best bids for the landmark Sandyford House pub, in Sandyford, Dublin 18. The property, which is guiding over €2m, has potential as either a pub or a redevelopment site, thereby attracting the interest of both publicans and developers. Under the recently-implemented Dun Laoghaire Development Plan 2016-2022, the property is zoned ‘Neighbourhood Centre – to protect, provide for and / or improve mixed use neighbourhood facilities’. The overall site extends to 1.17-acres and includes a 13,240 sq. ft. licenced premises which currently enjoys a high turnover. The site also includes parking for over 100 cars and a vacant retail unit. The Irish Times, 3rd November
Help-to-Buy Scheme: The Government is to lower the cap for the ‘help-to-buy’ scheme announced in last month’s budget from €600k to €500k. Under the initial scheme, first-time buyers (FTBs) of new homes and self-builds would qualify for a tax rebate worth up to 5% of the price of a home to a value of €400k. FTBs purchasing homes up to €600k would also have qualified for the rebate, however it would have been capped at €20k. Fianna Fáil has since objected to this, describing it as a “mansion grant”. The Irish Times now reports that Fianna Fáil and Fine Gael have reached an agreement on the scheme, whereby the cap will be lowered to €500k. In return Fianna Fáil will not propose any amendments to the Finance Bill, allowing it to be brought into legislation. The Irish Times, 3rd November
Central Bank Mortgage Rules: Figures released by the Central Bank show that one in six buyers were exempted from its recently implemented mortgage lending rules. Of the c. 11,000 loans drawn down by residential buyers in the first half of 2016, 1,744 (16%) received an exemption. The most common exemption was on income multiples (which allows homebuyers to borrow more than 3.5 times their income), while a significant number of buyers borrowed more than 80% of the cost of their home (or 90% for first time buyers up to €220,000). The Irish Times, 7th November
Northwest Business Park: William Harvey & Co is guiding c. €2.95m for a modern detached distribution and office building in Northwest Business Park at Ballycoolin, Dublin. The 25,912 sq. ft. building is located on a 2.25-acre site and is let to DSV Air & Sea on a 10-year lease from July 2010. The current rent of the building is €199k p.a., offering an initial yield of 6.46%. The selling agent has expressed a view that the investment is currently under-rented. The Irish Times, 2nd November
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Project Tolka: NAMA is expected to commence the sale of Project Tolka within the next few weeks. The loan portfolio has a par value of c. €1bn and is secured by a number of commercial and leisure properties in Dublin. The assets in the portfolio include Burlington Plaza in Dublin 4, which has a reported value of up to €250m, and Belfield Office Park. The loans in the portfolio are connected to John Flynn, Paddy Kelly and the McCormack family. The Sunday Times, 30th October
Pepper Portfolio: Permanent TSB (PTSB) is reportedly close to acquiring c. €100m worth of performing mortgages from Pepper Asset Servicing. Pepper acquired the mortgages from GE Capital in 2012 as part of a c. €600m par value loan portfolio. GE Capital’s portfolio included c. 3,500 mortgages and the majority of the loans in the portfolio were non-performing at the time. Following the acquisition, Pepper has worked to restructure the loans in the portfolio. Pepper reportedly paid c. 40 cent in the Euro for the loans, with Goldman Sachs providing the majority of the funding. The Irish Times, 27th October
AIB Portfolio: The Sunday Business Post reports that AIB has hired A&L Goodbody (A&LG) to perfect the Bank’s security over a portfolio of distressed loans, as it prepares to sell them in early 2017. According to market sources, the loan portfolio will be secured by c. 1,500 investment properties and will have a par value of c. €400m. A&LG has already contacted each of the borrowers in the portfolio, seeking collateral and security documents. Grant Thornton is understood to be supporting A&LG in the process. The Sunday Business Post, 30th October
Danske Portfolio: Danske Bank has confirmed that it sold hundreds of residential mortgages and personal loans to Cerberus Capital Management for c. €250m in October 2016. The sale represents the final stage in Danske’s withdrawal from retail banking operations in Ireland, after it closed all of its branches and customer accounts in 2014. The Sunday Times, 30th October
Project Madrid: According to The Sunday Business Post, the Doyle family has made multiple bids for Project Madrid, a NAMA loan portfolio secured on properties in Dublin city centre. The properties were previously acquired by Bernard McNamara. One of the bids is for the entire portfolio and has been made under the investment vehicle Crownway. Separately, the Doyle Collection hotel group, which owns the Westbury Hotel, has bid for four of the 13 properties in the portfolio which are adjacent to the hotel. The Sunday Business Post, 30th October
35 Henry Street: The Friends First Irish Commercial Property Fund has purchased a 3 store on 35 Henry Street in Dublin 1 for c. €9.2m, c. €1m above the €8.25m guide price quoted by Savills. The mobile phone operator 3 is paying a rent of c. €425k p.a., providing Friends First with a net initial yield of c. 4.5%. There are over 15 years left to run on the lease, which includes upwards only rent reviews. The Irish Times, 26th October
Jervis Shopping Centre: The UK’s Arcadia Group has availed of a 20-year break option on its five retail units in Dublin’s Jervis Shopping Centre to allow it to change the composition of its stores. Following negotiations, Arcadia will replace its current lineup of Wallace, Miss Selfridge, Burton, Topman and Topshop with a new Topshop – Topman store. Arcadia had been paying a rent of c. €2m p.a. for the five shops, which had a floor area of c. 30,000 sq. ft. Arcadia is now expected to pay a rent of c. €1.3m p.a. for the new 20,000 sq. ft. store, which should be open by next summer. It is understood that Savills we soon begin seeking tenants for two 5,000 sq. ft. units in the centre, for which the combined projected rental income is c. €1m p.a. The Irish Times, 26th October
Central Bank HQ: The Sunday Times reports that Hines Real Estate is expected to be chosen as the preferred bidder for the Central Bank’s HQ on Dame Street in Dublin city centre. Bids for the property, which was guiding €65m, were submitted last weekend and a decision on the preferred bidder is expected this week. According to market sources, the highest bids were by Hines and Hibernia REIT. The Sunday Times, 30th October
East Point Business Park: JLL is guiding €12.5m for Block P2 of East Point Business Park in Dublin 3. The four-storey, 50,000 sq. ft. property includes 71 car spaces and is let to Virgin Media Ireland, with the lease guaranteed by UPC Broadband. The lease for the property runs for 25-years from December 2000, although there is a break option at the end of 2020. The current rental income of c. €647k p.a. reflects a rent of c. €12 psf for the office space and c. €700 per car space. There is significant potential to increase the rental income of the property at the next rent review, as similar properties in the business park are seeking rents of €20 – €25 psf for vacant floor space and €1,350 per car space. The Irish Times, 26th October
Burlington Road: Amazon has completed legal contracts to rent a 172,000 sq. ft. office block under construction on Burlington Road in Dublin 4. Amazon will pay a blended rent of c. €50 psf for the block, under a lease which contains a break option in year 13. The site on which the block is being developed was acquired in 2014 by Johnny Ronan, in a joint venture with U+I and Colony Capital. Once the development is complete next summer, the German company Union Investment Real Estate will assume ownership of the block. The Irish Times, 26th October
Adelphi Plaza: Bank of Ireland Payment Acceptance (BoIPA) will relocate c. 100 employees from East Point Business Park in Dublin 3 to Adelphi Plaza on George’s Street Upper in Dún Laoghaire. BoIPA will occupy the entire of the 13,038 sq. ft. second floor of Adelphi Plaza, while also renting 15 car spaces. BoIPA’s lease will run for 20 years and they will pay a rent of c. €25 psf. The five-storey, 62,900 sq. ft. property was acquired in 2013 by Solvalla Properties Ltd for c. €3.65m. Since acquiring the property, Solvalla has undertaken a floor-by-floor refurbishment of the property. The Irish Times, 26th October
Dublin Airport Hotel: The Dublin Airport Authority has retained Savills Hotels & Leisure to identify a developer for a new four-star, 402-bedroom hotel which will be built alongside Dublin Airport’s Terminal Two. Savills is expecting significant interest for the project, which will be completed under a Finance, Build Operate and Transfer (FBOT) model. The hotel will be part of a new 11-storey, c. 245,000 sq. ft. terminal-linked property. Construction is expected to commence in October 2017 and the hotel should be open by 2019. The Irish Times, 27th October
Dalata Hotel Cardiff: Dalata has paid c. €27m to acquire the freehold interest in its Clayton Hotel Cardiff in Wales. The four-star, 216-bedroom hotel was purchased in a transaction which will also see Dalata acquire Rush (Central) Limited. Based on current exchange rates, Davy research estimates that the acquisition will increase 2017 EBITDA by c. €1.7m. The Irish Times, 26th October
Griffin Group: The Griffin Group, which owns Hotel Kilkenny, the Ferrycarrig in Wexford town and Monart in Enniscorthy, has paid c. €26m to purchase its loans from Bain Capital. Bain acquired the loans in 2015 from Ulster Bank, under a company called Coney Investments. The loans had been performing when they were sold by Ulster Bank. The latest accounts for the Griffin Group show that the group had turnover of c. €20.7m and operating profit of c. €2.6m in 2015. The Sunday Business Post, 30th October
Shaw Court: Cushman & Wakefield is guiding in excess of €6.8m for 23 apartments off South Circular Road in Dublin city centre. Shaw Court consists of 14 one-bed and nine two-bed apartments, for which the rental income is c. €330k p.a. According to Cushman & Wakefield, the true rental value of the apartments is c. €495k p.a. Based on the guide price, the portfolio offers a net initial yield of 4.85%, while there is potential to increase the gross return to 7.28% by increasing the rental income to c. €495k p.a. The Irish Times, 26th October
Palmerstown Site: Receivers appointed by NAMA are to sell a 9.76-acre site in Palmerstown, Dublin 20, by way of licence agreement. Savills has been retained to identify the most suitable developer for the site, which has planning permission for 102 terraced and semi-detached houses. The sales process will include a published weighting system, upon which each bid will be assessed. The system will evaluate factors such as the price, the bidder’s ability to construct and their track record of completing similar projects. As a consequence of this sales process, no guide price is being quoted by Savills. However, The Irish Times estimates that the site could sell for €7m – €8m on the open market. According to David Browne of Savills, the gross development value of the site could exceed €35.55m. The Irish Times, 26th October
Q3 2016 Mortgage Drawdowns: The Q3 2016 report from the Banking & Payments Federation Ireland (BPFI) on mortgage drawdowns shows that there were 8,133 mortgages drawn down in Q3 2016, a 19.6% increase QoQ and a 13.7% increase YoY. On a value basis, there was c. €1.558bn of mortgages drawn down in Q3 2016, an increase of 21.1% QoQ and an increase of 16.7% YoY. BPFI Mortgage Drawdowns, Q3 2016
Prime Lettings: The UK health food retailer Holland & Barrett has agreed terms with Rohan Holdings to lease a c. 66,000 sq. ft. warehouse in Dublin Airport Logistics Park which should be completed by May 2017. Holland & Barrett will pay a rent of c. €9.55 psf for the warehouse, under a 25-year lease which will have a break option in year 15. The pharmaceutical company Uniphar is also believed to have agreed to a lease for a new c. 90,000 sq. ft. property near Baldonnel on similar terms. The Irish Times, 26th October
Tyrrelstown Site: CBRE is inviting offers of €5.25m for a 32.4-acre site in Tyrrelstown, Dublin 15. The site is zoned for high technology development and is available to purchase in one or more lots. According to CBRE, the site can facilitate a substantial level of accommodation for high-tech manufacturing and logistics operators. The Irish Times, 26th October
Offaly Airport: The investors behind the plans for a new airport in Offaly could be announced within the next four weeks. Midlands Airport Developments is looking to build an airport in Offaly between Horseleap and Tubber, and is currently in negotiations with landowners in the area. The cost of the airport may reach €500m. The project has been categorised as critical infrastructure, which allows the planning application to go straight to An Bord Pleanála. The Irish Times, 28th October
Commercial Property Market Performance: The IPD / SCSI index shows that Irish commercial property assets generated returns of 2.1% in Q3 2016, bringing the YTD returns up to 8.5%. The best performing sectors were offices in Dublin 1, 3 and 7 and industrials in south-west Dublin, which achieved returns of 3.2% in Q3 2016. The industrial market has been the best performing sector for the 12-month period ending September 2016, achieving total returns of 20.6%. The Sunday Business Post, 30th October
Grange Clinic: Savills is guiding €3m for the Grange Clinic on the Grange Road in Donaghmede in Dublin 13. The 8,581 sq. ft. medical centre was developed in 2008 and generates rental income of c. €242k p.a. from multiple tenants. Boots is the single-highest paying tenant, paying c. €55k p.a. to occupy a 1,345 sq. ft. ground floor pharmacy unit. Other services in the clinic include two group GP practices, a physiotherapist, a chiropodist and an acupuncturist. The Irish Times, 26th October
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